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How My Company Got Started

Written by: Henk Boshoff

Article Overview: South African entrepreneur Henk Boshoff talks about what led him to create his company, S-Curve Technologies, what it takes to succeed, and his advice for others.

How My Company Got Started

In 2003 I began the idea of owning a business, but had no idea where to start. As an
engineer in a cozy job the risk to be without income made it look like an impossible dream.
To make the dream real, I decided to select a name for the business because it carried
zero risk. This process took about two years. Every time I doubted that it would ever
happen, I could tell myself it's already happening. What I didn't realize at that stage, was
that I didn't only think of the name, but also subconsciously of all other issues to create
the business.

In 2005 my first major milestone occurred. An electronics component representative,
introduce me to a new GPS chip. I grabbed the opportunity, and immediately created a
GPS module and ATM location management concept for a Major bank in South-Africa
and and a presentation was set-up. To look more professional, I decided it was important
to have a registered name, and I tried to register the business. Unfortunately the name I
spent so much time selecting, already existed, and I had to come up with a new name in
two weeks. I did this, and registered the business. The presentation went extremely well,
but my concept was declined because it was too futuristic. So I was back at square one. At
least this time my business was registered.

During the next year I added all my business-related expenses into a formal accounting
system to teach myself accounting. I did a lot of marketing for the concept I created, but it
was dead. During this period, my business thinking continued to grow, although I had no
income.

At the end of year 1 my business had expenses of about $2500. This made me realize that
I was sponsoring an entity with my salary (I see the business as it's own entity, and not an
extension of myself). I decided the business had to create it's own income. This caused a
major mind shift, from trying to develop the next big concept into selling anything.

Soon afterwards I made my first sale. I re-sold a portion of my office bandwidth for $40. I
then registered as a reseller of computers, and soon afterwards started making computer
sales. (Something an engineer don't do in a very status-conscious South-Africa). I also
began doing part time contracting design and basically worked my 8 hour day job, just to
go home and do another 4 to 8 hours at home. In the free hours left, I started a new
concept project in the medical field, to be less dependent on contracting.

During a holiday trip later that year, I created a mind map of where I see the business, and
then realized that I had everything to resign. I made the decision to resign within a month,
which I did.

Within a week I got my first contract. One after the other contracts soon followed, and I
managed to invoice enough to survive.

Initially my business-plan was to do contracting, PC selling, PC maintenance, developing
my medical database concept, running a business-lounge web forum and to do technology
management. I basically did anything that would create income. 3 Months into the
business I started refining my business-plan. I realized I was going nowhere fast. The
result was a total rethink/redesign of my original business plan. I realized that I am an
electronic data communications specialist, most contracts I worked on was on data
protocols. I also had the medical background from working on the database, and I am from
Africa. I soon realized the gap. S-Curve technologies could be the Sub-Sahara African
medical data specialists. I started marketing this and soon created business associations
with similar groups. I selected contracts in line with my vision, thus creating the technology
skills in my business. I created products in line with the data communications, and thus the
second phase of growth started. I'm now in negotiations with medical data products, and I
am often traveling to install, integrate and manage data systems. Most of it is done on
contractual basis, but negotiations for my own product development is already ongoing. I
am not known yet as the Sub-Sahara data specialist, but the exponential growth is there.

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Article Tags: business plan, business plan, business plan, income, income, income, management concept, South Africa, South Africa, the business, the business, the business, the business, the business, the business, the business, the business



Related Forum Posts
Re: What or Who Sparks Your Business Interest - Hi This is really a great thread. For me it was always wanting to be responsible for myself without anyone have the power to make my decisions for me. I have also done many different things in my life. Started as a hairdresser and did that for 20 years, some of them working from home (which was good when my children were young and needed me around). Then worked as a bookkeeper and then a credit manager in a video distribution company for 18 years. Loved the job but hated having to answer to a boss. In between joined an MLM company selling health and weight loss products and then became a bookkeeper again but working for myself with my own clients. Started internet marketing and this I truly love. I can work the hours that suit me and it's totally up to me to do the work if I want to succeed. MichelleJ
How to valuate a business - Hi Garth - here is how we did it at Northern Crown Capital when I was helping them raise venture capital for Toronto-based entrepreneurs. Assume the start date is 2003 so 2008 projections are 5 years out: How Northern Crown Capital Valuates a Business 2008 Financial Projections Earnings Before Tax $5,865,000 Tax Rate 42% Taxes $2,463,300 Net Earnings $3,401,700 Amount Seeking to Raise Today $3,500,000 Discounted Value of Future Opportunity, 5 Years Out 2008 P/E Ratio 15 Value of Company in 2008 $51,025,500 Discount Rate Applied 30% Year 2008 $51,025,500 Year 2007 $35,717,850 Year 2006 $25,002,495 Year 2005 $17,501,747 Year 2004 $12,251,223 Value of Company at Investment in 2003 $12,251,223 Less: Investment Amount $3,500,000 Present Value $8,751,223 Discount for Risk & Private Company 40% Less: Discount for Risk & Private Company $3,500,489 Private Company Value $5,250,734 Present Value (What the Owner Keeps) $5,250,734 60.00% Financing (What the Investor Gets) $3,500,000 40.00% Total $8,750,734 100.00% I hope this helps!
5 Entrepreneur's success stories - My local paper's business section profiled 5 successful entrepreneurs in the Jan 6, 2008 issue of the paper. Thought I'd share just a bit of it here. Bill and Heidi Dittmar: Executive Lifestyle Jeff Wassmer: Spectrum Deloise Hawkins, Star Whitaker and Lenzy Hill: Touch of Elegance Stephen Brosius: Advanced Door Systems Pam Watson: Goodrich and Watson Insurers Bill and Heidi Dittmar: Executive Lifestyle founders of a magazine called Executive Lifestyle. Started in 1991. Revenue has grown more than 200% since 2004. 4 full time, 3 part time employees "We started off with $1,000 and a stupid idea." It began as This Month, a guide for tourists, and morphed into Executive Lifestyle. Jeff Wassmer: Spectrum Company specializes in computer network security and intelligence surveillance and reconnaissance. Wassmer was an 11-year Air Force guy, so he had "ins" in order to form this business. Deloise Hawkins, Star Whitaker and Lenzy Hill: Touch of Elegance Founded business in 1994. 12 employees. Their company designs and plans an average of 25 events each month in Hampton Roads and other parts of Virginia. Stephen Brosius: Advanced Door Systems Started company in 1995. 5 full-time employees, plus subcontractors. After having worked as a subcontractor for others in the construction business for 20 years, he decided to start his own business. Pam Watson: Goodrich and Watson Insurers At age 49, she was approached by an insurance colleague to buy out their employer's insurance division. They did so, and became employers themselves., witj 4 full-time people.
Jacqueline Cochran! - Started out as a poor sharecropper, ended up as the founder of a cosmetic line and a pilot, head of the WASP during WWII. From starting from adversity and reaching the top, she's got to be up there as one of the greats.
Young Entrepreneur in International trading - I’m 23. Owns an ice-cream company. Started the company when I was 20. Increased sales compared to previous owners with 50%. Are now looking for new opportunities to expand my business.


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